Scalping and Intraday Trading Strategies Discussion - Page 51

Kimaki · #**751** (**permalink**) 09-30-2009, 04:15 PM

Aha, I see the light.

Quote:

Originally Posted by Sean Hyman

Those are the ones that you'd want to pull up on your charts to look to see if there were good technical entry points in those directions, yes.

Sean Hyman · #**752** (**permalink**) 09-30-2009, 04:24 PM

Quote:

Originally Posted by Kimaki

Aha, I see the light.

You're just simply flowing with the direction of the order flow/money flow.

Kimaki · #**753** (**permalink**) 09-30-2009, 04:52 PM

3 Quick questions Sean. When scalping, what is the longest one should expect to stay in a trade? Articles suggest 1-2 min max. 2) what is the usual stop amount? and 3) Do you still use 2:1 reward risk ratio.

Quote:

Originally Posted by Sean Hyman

You're just simply flowing with the direction of the order flow/money flow.

luckylady · #**754** (**permalink**) 09-30-2009, 05:51 PM

Quote:

Originally Posted by Sean Hyman

Robert, it kind of depends upon your scalping style.

Some like to scalp ranges. If so AUD/NZD and EUR/CHF have been two pairs that tend to stay in somewhat controlled ranges. However, on EUR/CHF with occasional interventions...I'd suggest only longs there.

If you like momentum/breakouts, etc. Then I'd suggest looking at the % gainers/% losers lists each day. I do this with Pro Real Time's charts but this can be done for free using netdania.com 's Net Station charts: NetDania - NetStation - Application - Live forex rates, real-time forex rates, live currency rates, foreign exchange rates, exchange rate

You can click a couple of times on the top of the % Change column a couple of times. Then you will see it ranked from largest to smallest % gains.

That will give you an idea of the momentum and where it's heading.

I've been eavesdropping on your conversation. Interesting tidbit of information about scalping. Thanks Sean for this detailed explanation. And thanks Kimaki for the questions.

Kimaki · #**755** (**permalink**) 09-30-2009, 06:05 PM

Cool, These guys really help big time.

Quote:

Originally Posted by luckylady

I've been eavesdropping on your conversation. Interesting tidbit of information about scalping. Thanks Sean for this detailed explanation. And thanks Kimaki for the questions.

VINCY BALBOA · #**756** (**permalink**) 10-01-2009, 06:23 AM

Quote:

Originally Posted by John Rivera

I am writing a new daily report where I try and identify potential pairs. It appears daily in special reports and will have its own section when the new site launches. The latest touted the USDJPY which has held to its range of 89.25-89.80 since.

USD/JPY Consolidation Makes It Attractive For Scalping Strategies

Hello Dr, John Rivera

The Usd/jpy is Quite in range as we Know Previously when The usd/jpy Hit 50.0% 90.39 level And just taken the Support 76.4% 89.232 ..

Not the Usd/jpy is Stuck on The wheel 61.8% 89.878 and Now Probably The Usd/jpy Sentiment Little Bullish and The We Can see the Bearish Until The Daily Chart Stochastic Shouldn’t Be Calm As To Go Bearish..

So what is Your Opinion More about Usd/jpy …info..

thanks

boursicoton · #**757** (**permalink**) 10-01-2009, 06:27 AM

what's the ratio for best scalp ?
target/ stop

Sofia.forex · #**758** (**permalink**) 10-01-2009, 07:40 AM

Quote:

Originally Posted by boursicoton

what's the ratio for best scalp ?
target/ stop

Hi there,

Stop loss order must be used by traders during the Forex trade - You must have an idea about stop loss order decision, according to the current situation during the trading - Set stop loss order according to your risk and reward ratio.

Always trade the market according to the trend, so if the trend is bullish, initiates a long position; and if the trend is Bearish, you must be bearish and open a short position in the Forex market.

You must know both technical and fundamental analysis, and use both methods while you trade in FX market. Both Analyses play an important role in affecting currency movements in foreign currency exchange.

Sean Hyman · #**759** (**permalink**) 10-01-2009, 10:35 AM

Quote:

Originally Posted by luckylady

I've been eavesdropping on your conversation. Interesting tidbit of information about scalping. Thanks Sean for this detailed explanation. And thanks Kimaki for the questions.

luckylady, you're welcome. Glad to have been of help. And thanks for posting. We'd love to hear more from you.

Sean Hyman · #**760** (**permalink**) 10-01-2009, 10:40 AM

Quote:

Originally Posted by Kimaki

3 Quick questions Sean. When scalping, what is the longest one should expect to stay in a trade? Articles suggest 1-2 min max. 2) what is the usual stop amount? and 3) Do you still use 2:1 reward risk ratio.

If its on the momentum plays...you'd want to watch the screen like a hawk and get out when the momentum dies off.

If you are scalping ranges...then you can place stops at 1/2 the width of the range and you still have a 1:2 risk to reward ratio.

However, other than that....many scalping strategies are dependent upon a high win% rate because they will have a poor risk to reward ratio.

boursicoton · #**761** (**permalink**) 10-01-2009, 11:52 AM

i'm an old trader but i'm a young scalper...
systems , indicators .... i put my first ordre may 1979....
best regards !

Sean Hyman · #**762** (**permalink**) 10-01-2009, 11:59 AM

Quote:

Originally Posted by boursicoton

i'm an old trader but i'm a young scalper...
systems , indicators .... i put my first ordre may 1979....
best regards !

boursicoton, good to have you with us...and thanks for posting. Looking forward to more posts from you.

mekosmowski · #**763** (**permalink**) 10-01-2009, 12:51 PM

I'm working on a short-term strategy for the Asia market hours when I do my trading. I don't know if it technically scalping, since I'm usually in a position for 20 - 30 minutes. The Asia market in my experience is slower than the European / American market hours.

First, I examine the trading range on the five minute chart and compare it to the spread. If the spread is 3 pips and the range is moving 10 pips from high to low, maybe I want to look elsewhere for an opportunity. Ideally I want range:spread of 20:1, but sometimes I'll go as low as 10:1 for AUD and NZD pairs. Also, I take note of the period between highs and lows. If the pair is going to take 3 hours to move from a high to low, then I'm likely to be in the position for at least an hour to make any profit at all and maybe I look at other pairs.

Next, I verify the trend with daily and 4 hour charts. If these trends don't agree, find a different pair. After that, I look for an entry where the 5 minute and 15 minute charts agree that there is a good entry point. Then I set up a traditional 2:1 reward:risk 8 - 48 hour duration swing trade that I am comfortable with.

At this point, I get the best results if I do something else for 10 - 20 minutes, though checking in on the position periodically, just not watching it like a hawk. Maybe spend some time looking at other positions. Then when the position is in the profit zone, take profits early and cancel the OCO for the swing trade setup. I'm not very patient with short-term trades and the Asia cycles tend to be much longer in period than the European / American cycles.

Setting up the swing trade gives me the confidence to weather an entry that's not right exactly at the high or low for the time period. At the same time, I have the shorter time frame profit point in mind in order to complete more trades per session.

I had the chance to do a little scalping on the European and American market hours and was very successful at riding small cyclic moves up and down a few times then switching pairs. Then I tried to do the same thing in Asia market hours and got soaked (some of the soaking was through beginner stupidity of too big position sizes, etc.). This plan seems to be working ok, though I need to test it for a couple weeks to verify how well the plan works.

I'll stop by with periodic updates if people are interested.

John Rivera · #**764** (**permalink**) 10-01-2009, 01:14 PM

Quote:

Originally Posted by VINCY BALBOA

Hello Dr, John Rivera

The Usd/jpy is Quite in range as we Know Previously when The usd/jpy Hit 50.0% 90.39 level And just taken the Support 76.4% 89.232 ..

Not the Usd/jpy is Stuck on The wheel 61.8% 89.878 and Now Probably The Usd/jpy Sentiment Little Bullish and The We Can see the Bearish Until The Daily Chart Stochastic Shouldn’t Be Calm As To Go Bearish..

So what is Your Opinion More about Usd/jpy …info..

thanks

I hope you went short at that level because we did see Bearish momentum follow. But again support came ahead of 89.25 despite a big down day on stock markets. The threat of BoJ intervention may be influencing price action and makes the Yen crosses an interesting study over the next few days.

Sean Hyman · #**765** (**permalink**) 10-01-2009, 01:31 PM

Quote:

Originally Posted by mekosmowski

I'm working on a short-term strategy for the Asia market hours when I do my trading. I don't know if it technically scalping, since I'm usually in a position for 20 - 30 minutes. The Asia market in my experience is slower than the European / American market hours.

First, I examine the trading range on the five minute chart and compare it to the spread. If the spread is 3 pips and the range is moving 10 pips from high to low, maybe I want to look elsewhere for an opportunity. Ideally I want range:spread of 20:1, but sometimes I'll go as low as 10:1 for AUD and NZD pairs. Also, I take note of the period between highs and lows. If the pair is going to take 3 hours to move from a high to low, then I'm likely to be in the position for at least an hour to make any profit at all and maybe I look at other pairs.

Next, I verify the trend with daily and 4 hour charts. If these trends don't agree, find a different pair. After that, I look for an entry where the 5 minute and 15 minute charts agree that there is a good entry point. Then I set up a traditional 2:1 reward:risk 8 - 48 hour duration swing trade that I am comfortable with.

At this point, I get the best results if I do something else for 10 - 20 minutes, though checking in on the position periodically, just not watching it like a hawk. Maybe spend some time looking at other positions. Then when the position is in the profit zone, take profits early and cancel the OCO for the swing trade setup. I'm not very patient with short-term trades and the Asia cycles tend to be much longer in period than the European / American cycles.

Setting up the swing trade gives me the confidence to weather an entry that's not right exactly at the high or low for the time period. At the same time, I have the shorter time frame profit point in mind in order to complete more trades per session.

I had the chance to do a little scalping on the European and American market hours and was very successful at riding small cyclic moves up and down a few times then switching pairs. Then I tried to do the same thing in Asia market hours and got soaked (some of the soaking was through beginner stupidity of too big position sizes, etc.). This plan seems to be working ok, though I need to test it for a couple weeks to verify how well the plan works.

I'll stop by with periodic updates if people are interested.

mekosmowski, awesome keep us updated on how that's working for you. Good deal.